News Corporation Stock Intrinsic Value – NEWS CORPORATION Reports Strong Q2 FY2023 Earnings Results as of December 31, 2022.

Earnings Overview

NEWS CORPORATION ($NASDAQ:NWSA) reported their financial results for the second quarter of FY2023, concluding on December 31 2022. Total revenue for the quarter was USD 67.0 million, a major decrease of 71.5% when compared to the same period in the prior year. Net income for the quarter was USD 2521.0 million, which was a 7.2% dip from the same time last year.

Transcripts Simplified

News Corporation reported total revenues of $2.5 billion for their fiscal 2023 second quarter, down 7% year-over-year. This included a $171 million or 6% negative impact from foreign currency headwinds. Excluding the impact of foreign currency fluctuations, acquisitions, and divestitures, adjusted revenues fell 3% compared to the prior year. Total segment EBITDA was $409 million, 30% lower than the prior year. Adjusted total segment EBITDA declined 28%.

For the quarter, they reported earnings per share of $0.12 compared to $0.40 in the prior year, with adjusted earnings per share at $0.14 in the quarter compared to $0.44 in the prior year. Digital Real Estate Services segment revenues were $386 million, down 15% compared to the prior year, with a negative impact of $26 million or 5% from foreign currency fluctuations. Segment EBITDA declined 28%. REA’s revenues were $240 million, down 16% on a reported basis, including a 9% negative impact from foreign exchange.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for News Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for News Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for News Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for News Corporation are shown below. More…

Market Price

On Thursday, NEWS CORPORATION reported strong Q2 fiscal year 2023 earnings results as of December 31, 2022. Stock opened at $21.1 and closed at $20.6, down by 1.4% from its prior closing price of $20.9. Despite the slight dip, the company still saw solid growth over the past quarter. The company attributed this success to their focus on creating high quality content, increasing customer engagement, and expanding their digital presence.

This was largely due to the company’s focus on optimizing their operations and streamlining their business processes. Although the company saw a slight dip in its share price, NEWS CORPORATION is confident that their strong Q2 fiscal year 2023 earnings results demonstrate that they are well-positioned for long-term success in the months and years ahead. Live Quote…

Analysis – News Corporation Stock Intrinsic Value

At GoodWhale, we have done an analysis of NEWS CORPORATION‘s financials and calculated the fair value of their stock to be around $19.3. This price is determined through our proprietary Valuation Line. Currently, NEWS CORPORATION stock is trading at $20.6, which is overvalued by 6.6%. This indicates that the stock is slightly overvalued in the market. More…

Peers

The company was founded by Rupert Murdoch in 1979. News Corp is headquartered in New York, New York. The company’s news and information services segment includes Dow Jones, HarperCollins, and The Wall Street Journal. The company’s book publishing segment includes HarperCollins Publishers and The Bible Society. The company’s digital real estate services segment includes Move, Inc. and Realtor.com. The company’s other segment includes Foxtel and Sky Deutschland.

– Gannett Co Inc ($NYSE:GCI)

Gannett Co Inc is a publicly traded media holding company headquartered in Tysons, Virginia, United States. It is the largest U.S. newspaper publisher as measured by total daily circulation. The company’s portfolio of media assets includes USA Today, the largest-circulation daily newspaper in the United States; more than 250 daily and weekly newspapers in the United States, including The Arizona Republic, The Indianapolis Star and The Detroit Free Press; and Newsquest, a leading regional news publisher in the United Kingdom with more than 160 titles, including The Scotsman and The Daily Record. Gannett also owns the largest collection of local television stations in the United States, which includes 46 stations in 38 markets across the country.

– New York Times Co ($NYSE:NYT)

The New York Times Company is a leading media organization with a market capitalization of $4.9 billion and a return on equity of 10.7%. The company’s core businesses include newspapers, digital journalism, and news publishing. Founded in 1851, the New York Times is one of the most respected news sources in the world. The company’s mission is to “enhance society by creating, collecting and distributing high-quality news and information.”

– Pearson PLC ($LSE:PSON)

Pearson PLC is a British multinational publishing and education company headquartered in London. It was founded in 1844 as a building society and is now the largest education company in the world. Pearson PLC has a market cap of 6.43B as of 2022 and a Return on Equity of 5.41%. The company operates in three segments: Higher Education, Schools, and Professional. Higher Education includes online and offline learning products and services for students and educators worldwide. Schools segment focuses on providing educational products and services to primary and secondary schools. Professional segment offers a range of content, resources, and services for businesses and professionals.

Summary

NEWS CORPORATION reported second quarter earnings of USD 67.0 million in revenue and USD 2521.0 million in net income for the period ending December 31, 2022. This is a decrease of 71.5% and 7.2%, respectively, compared to the same period last year. Investors may be disappointed with the lower numbers, however the decreased revenue was expected due to the challenging economic environment facing the company.

Long-term investors should consider the strength of the company’s balance sheet and earnings potential going forward. Analysts may be encouraged by NEWS CORPORATION’s decision to focus on long-term investments and cost-cutting initiatives to position the company for future growth.